Tuesday, December 10, 2019

How Surplus Stocklot Arises?

Surplus stock lot is the situation when a company has an excess amount of what is needed, no matter if it is due to product development or excess of products for the company’s own set limit.

     When Purchase of Stock in Excess Quantity:

When the purchase of raw material was made to target the production of 800 T.V.’s per month but the actual production was only 650 T.V.’s, this result in the surplus stock lot.

     When Purchasing bulk quantity is Unavoidable

It is very obvious that manufacturers do not order a small quantity. In such a case, the materials required for current needs should be kept and the excess should be disposed of.

Sell Excess Inventory

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